Malaysia-based Serba Dinamik International Limited (SDIL), a wholly owned subsidiary of Serba Dinamik Holdings Berhad (SDHB), has signed a memorandum of understanding (MoU) with Nepal-based Hydro Village Private Limited (HVPL) for development and operation of the 57.3 MW Myagdi Khola hydro project.

The project is estimated to cost about $100m, and HVPL has executed a power purchase agreement (PPA) with Nepal Electricity Authority and obtained required legal clearances from other concerned departments.

Per the MoU, SDIL will subscribe to shares in HVPL and participate in the engineering, procurement, construction and commissioning, as well as operations and maintenance, of the project.

The MoU was signed March 13 in Kuala Lumpur by SDHB CEO Dato’ Dr Ir Mohd Abdul Karim bin Abdullah and managing director of HVPL Sushil Pokharel.

“The potential joint venture with Serba Dinamik group, which has an extensive track record in the energy sector, will help HVPL to secure foreign investment as well as enhancing Nepal’s technical capabilities and project financing capacity,” Pokharel said.

“This is our first clean energy venture in South Asia, and we are happy to expand our investment into this project,” Dato’ Dr Ir Mohd Abdul Karim bin Abdullah said in a statement.

SDHB and its group of companies are an international energy services provider that provides engineering solutions and has operations that cover various countries in five different regions in the world.